Junk Bond Yields Are Back Above 15%: 10 Stocks In The Pressure Zone
Junk bond yields surpassed 15%, the highest since 2022. These 10 stocks with bonds in XCCC carry $97 billion of debt as higher rates bite.
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Junk bond yields surpassed 15%, the highest since 2022. These 10 stocks with bonds in XCCC carry $97 billion of debt as higher rates bite.
Centene Corporation has significantly improved its financial position by generating nearly $8 billion in operating cash flow in the first half of 2026 and reducing its debt-to-capital ratio to 41.6% through $1.3 billion in senior note repurchases. The company monetized $1 billion in Part D receivables to support debt reduction while maintaining financial flexibility amid Medicaid payment timing swings.
Centene Corporation reported Q2 2026 adjusted EPS of $2.51, marking a significant recovery from a loss a year prior, driven by improved medical cost trends and better execution. The company expects Medicaid membership to decline 8%-9% in 2026, but profitability improvements in Marketplace and Medicare segments, combined with higher Medicaid rates and cost initiatives, support continued recovery. CNC reaffirmed its 2026 adjusted EPS guidance above $4.80.
Analysts review high-yield healthcare stocks CVS, Viatris and Medtronic, citing ratings, price targets, dividend yields and recent company news.
CVS Health stock declined 1.4% to $87.60, underperforming the broader market which gained 1.49%. The stock has fallen 4.49% over the past month. The company is expected to report flat EPS of $1.6 for the upcoming quarter with revenue projected at $105.04 billion (up 2.11% YoY). CVS holds a Zacks Rank #3 (Hold) rating and trades at a Forward P/E of 11.07, below its industry average of 17.31.
CVS, Steris and Baxter are oversold healthcare stocks with RSI readings near or below 30, potentially offering undervalued buying opportunities.